The Nasdaq surged to a record-high close on Sept 21, lifted by gains in Advanced Micro Devices and other AI heavyweights, while Treasury yields retreated from recent highs and crude prices tumbled to an 11-day low on speculation about a potential breakthrough in Middle East talks at a UN meeting this week.
Chip stocks rallied, with Intel surging 12.2 per cent and Arm Holdings up 17 per cent. The PHLX semiconductor index jumped 4.3 per cent.
Advanced Micro Devices rose about 10 per cent to reach a market capitalisation of US$1 trillion (S$1.3 trillion) for the first time.
The Nasdaq notched its first record-high close since June 2, while the S&P 500 ended about 0.4 per cent below its Aug 13 record-high close.
Investors pointed to signs that suggest spending on AI is still expanding, despite recent safety warnings from leaders of AI giants a week ago that triggered a global tech selloff.
The benchmark US 10-year yield fell below the psychologically important 5 per cent level as Brent crude futures dipped below US$100 a barrel to their lowest level since Sept 9, later settling at US$100.34 per barrel.
While Washington and Tehran exchanged threats through the weekend, US President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to attend the UN General Assembly in New York this week.
“We’ve been kind of programmed to follow the price of oil and the yield on the US 10-year, and if you look at those two things today, they’ve shifted from being headwinds to tailwinds for this market, at least in the near term,” said Art Hogan, chief market strategist at B. Riley Wealth.
Meta shares soared 11.4 per cent after Wells Fargo hiked its price target on the social media platform following the recent launch of its Muse AI assistant.
The S&P 500 climbed 1.49 per cent to end the session at 7,764.70 points.
The Nasdaq gained 2.26 per cent to 27,122.09 points, while the Dow Jones Industrial Average rose 0.71 per cent to 52,048.83 points.
The S&P 500 on Sept 18 traded at just under 19 times expected earnings, its lowest valuation since 2023, according to LSEG data. AI-related heavyweights are responsible for much of the recent increase in earnings expectations.
Investors remained wary of the interest-rate outlook after the US Federal Reserve last week raised rates for the first time in three years to fight inflation. Traders see a 50 per cent chance of another hike in October, CME’s FedWatch showed.
Commentary from at least 10 central bank policymakers is due this week.
US-listed shares of companies exposed to Greenland rose following progress in diplomatic negotiations between the United States and Denmark about the status of Greenland.
Greenland Mines tripled in value, while Greenland Energy more than doubled.
A Chinese-US summit on Sept 28 could cover topics including potentially extending the trade truce between the two superpowers, the Iran war and regulation of AI. A report said the US proposed to extend the trade truce by six months, while China sought a longer extension.
Bitcoin, a key marker of risk tolerance, rose over 6 per cent to a more than seven-month high, lifting Coinbase and Strategy.
Paramount Skydance fell almost 3 per cent after a source told Reuters the company had reached a settlement with California and 11 other states suing to block its US$110 billion merger with Warner Bros Discovery.
Eight of the 11 S&P 500 sector indexes rose, led by communication services, up 4.16 per cent, followed by a 2.4 per cent gain in information technology.
Advancing issues outnumbered falling ones within the S&P 500 by a 1.4-to-one ratio.
The S&P 500 posted seven new highs and 29 new lows; the Nasdaq recorded 64 new highs and 127 new lows.
Volume on US exchanges was relatively strong, with 16.5 billion shares traded, compared with an average of 16.2 billion shares over the previous 20 sessions. REUTERS
